Frustrated with his limited supplies, he carried on an intense letter exchange with Gates, and became increasingly bitter toward Congress, which he faulted for its inadequate support of the revolutionary cause.
In October 1776, the British flotilla, commanded by British Governor Guy Carleton, met Arnold's fleet met at Valcour Bay. Transported overland from the St. Lawrence River, the British fleet had been stripped down and then reassembled at the opposite end of Champlain. And now the British were ready to do battle. Arnold's intelligence data had been correct. The British fleet was superior in virtually every respect, including number. His realistic hope was to slow them down, and give Gates time to effectively defend Ticonderoga. Arnold's less than realistic hope was that he would bruise Carleton enough to persuade the British governor to return to Canada. Arnold had chosen to wait for the British at Valcour Bay, believing it would provide a better strategic position. His decision proved a smart one.
The fleets pounded at each other for an entire day, exhausting much of their ammunition, with the British finally retiring to a safe distance for the night. The outcome was basically a standoff, with both sides slugging it out inconclusively. But, in reality, it was an impressive stand on the part of the Americans. Arnold, however, knew that the next day would be different. Once the winds shifted favorably for the British, they would be able to encircle and annihilate his inferior and now damaged fleet. Knowing Champlain was lost, Arnold attempted a daring escape, moving his fleet past the British, under the cover of night, on to Crown Point.
The British pursued and caught the American fleet, pounding them into submission and then watching with relish as Arnold ordered the remaining ships to be abandoned and burned.
Arnold returned to Ticonderoga to brief Gates on his efforts on Lake Champlain and to help defend the fort from the now impending British attack. Governor Carleton's forces reached Ticonderoga in late October, but skirmished only briefly with the Americans before withdrawing to Crown Point. Arnold's exploits on Lake Champlain accomplished what they were intended to do. He had succeeded in delaying Carleton's advance long enough to make an assault on Ticonderoga impractical before winter.
Arnold's reputation soared again after Ticonderoga, but the praise was not universal. One of Arnold's own subordinates in the Lake Champlain campaign - one who had been briefly captured - criticized him vociferously for his poor leadership in the aftermath of his initial encounter with Carleton. In addition, other patriot leaders, including General William Maxwell, joined in the condemnation of Arnold, the "evil genius of the north."
